The Director of Street Maintenance wants to allocate his annual IDC budget of $1.2 million to the three divisions around the city. The recorded amounts for this year are as follows:
 FIGURE 1.png)
(a) North: Miles basis; rate = 300,000/350,000 = $0.857 per mile
South: Labor basis; rate = 200,000/20,000 = $10 per hour
Midtown: Labor basis; rate = 450,000/64,000 = $7.03 per hour
(b) Allocation:
North: 275,000(0.857) = $235,675
South: 31,000(10) = $310,000
Midtown: 55,500(7.03) = $390,165
Percent allocated = (235,675 + 310,000 + 390,165)/1.2 million × 100% = 78%
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